"Crisil Plans to grade listed stocks"

I feel rating stocks is not bad though we don't see this anywhere else. What we see is they rate corporate debt which is equivalent to rating stocks. The fact is Moodys and S&P utilizes close to 200 ratios of the company before rating their debt categorize each into one of 23 categories from AAA to BA- I think depending on the numbers that form in the ratios and different permutations and combination forming from the ratios. Now probably the Creditors can use this to allocate debt to the companies. I feel they should rate debts and create a secondary bond market, which can even help retired people by not having them to depend on banks for higher interest rates. Bonds can pay quarterly payment of interests. So government can work freely with policy rates though the reference risk in India is very high.

yes crisil rating must be considers.. its really very helpful for the new investors Too

Grading of stocks by independent agecies like Crisil is welcome and will be additional information worth consideration by investors. However, such agencies did not forewarn impending financial catastrophe in the USA is also well known. Therefore, investors should use their discretion before taking any investment decision based on such recommendation.

A good piece of information please.

Agree with you,

 it will be a great help, especially for investors without much market exposure. Currently grading is compulsory and done only for IPO in case of equity. From the point of view of the investor It will help in analysis, evaluation, comparison etc.

 Case of companies, small and not well known companies (undervalued) with good performance will get more attention and also rating can act as a strong marketing tool.

But don’t blindly follow ratings.

Equity rating for public reference? If yes, its an excellent option. HDFC gives this services for FIIs only, I believe. In fact, SEBI should do it compulsory for any company to get listed only if it has a rating from recognized agency like HDFC or CRISIL.

Investor would come to know by this, whether the company is worth investing or not.

You are right Esha, these type of rating will definitely give sufficient knowledge before investing also this will open a wide prospect for newly freshers in the market by which they can also learn many things. I therefore believe Crisil's rating should be considered by users.